Regarding TDS

This query is : Resolved

Rajnish (Querist)
Follow

14 October 2010 Dear Sir,

Please take a note that, we have made agreemnt between employee and company as professional service agreement.

please guide me which tax applicable ( TDS on Professional fees or TDS on contract)
please also send limit of tax.

thanking in advance
Reagrds
Rajnish

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

14 October 2010 If you are paying the amount as fees deduct TDS us/ 194J @10%.
Threshold limit is Rs 30000/- p.a. (From 01.07.2010, upto 30.06.2010 it was Rs 20000/- p.a.).

Also take note that the person shall not be registered to EPF. If you are contributing to PF then the TDS will be deducted u/s 192 i.e. TDS on salaries.

Rajnish

Rajnish (Querist)
Follow

14 October 2010 Dear Mr. Sanjay gupta,

Thanks for your reply.
Can we take as a contract in our books because TDS applicable @ 2%.

His / Her drwaing monthly 5,000/- if we will be dedcuted TDS @ 10% as prof. fees then take home will be reduce.

Furhter note that, we will be paid monthly basis and his/her not our payroll.

TDS on Contract Applicable or Not?

Please guide me.

Regards
Rajnish

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

14 October 2010 If you have a contract in place specifying the same then you can also deduct TDS u/s 194C. But please also mention the nature of service provided to draw a proper conclusion.

Rajnish

Rajnish (Querist)
Follow

14 October 2010 Dear Mr. Sanjay Gupta,

Thanks for your quick reply,

people work with our premises and they are work like as an employee but we consider as a contract and not on our payroll.

Then we are consider as contract or not?

Please reply.

Regards
Rajnish

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

14 October 2010 Yes. In this case TDS will be deducted u/s 194C on contractual labour.

Rajnish

Rajnish (Querist)
Follow

14 October 2010 Dear Mr. Sanjay Gupta,

Thanks for your fastest reply.

Regards
Rajnish

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok